1. Field of the Invention
The present invention relates to a Witness system that, using EDI (electronic data exchange), supports account settlement (accounting) and distribution systems among sellers and buyers.
2. Description of the Related Art
Today's distribution systems are manifold and, through complex distribution media, carry out the distribution of large quantities of goods. As a result, accounting processes undertaken between sellers and buyers are equally complex.
The system disclosed in FIG. 1 is representative of conventional account settlement (accounting) systems. First, with each delivery of goods, a buyer examines a delivery voucher sent—or tendered contemporaneously on site—by a seller. Using, illustratively, an internal system in the buying company, the buyer then reduces the details to voucher form, upon which payment to the seller is to be based. This detailed voucher discloses, among other information, seller's name, delivery date, description of goods delivered, unit price, quantity, and total price.
The buyer thereafter consolidates and aggregates detailed vouchers according, illustratively, to payment date, and makes a detailed payment statement. The detailed payment statement so made is the result of the above-described consolidation and aggregation of each detailed voucher. Minute details otherwise recorded in a detailed voucher are omitted from the detailed payment statement. By way of illustration, payment date and total price are reflected in the detailed payment statement; more particularized details (e.g., delivery date, description of delivered items, unit price, and quantity), however, are commonly omitted.
As between a buyer and seller trading daily many goods with a payment cycle of one payment per month, for example, detailed vouchers corresponding to delivered volumes are reduced to a single detailed payment statement, and only the aggregated total price is established according to the detailed payment statement.
The buyer, using the above described detailed payment statement, requests that its bank transfer funds in favor of the seller. The bank then makes a deposit for the amount specified in the detailed payment statement in favor of the Seller, with respect to whom the request for funds transfer was made, utilizing, illustratively, an inter-bank exchange system. As a result, a seller thus receiving payment learns, through notification from the bank, the amount of money received in the seller's bank account from the buyer.
The following problems are inherent in a conventional system like that described above. Specifically, the detailed payment statement used in the conventional system is a document that compiles in the aforesaid manner multiple delivery vouchers in establishing a total payment amount. A seller is thus unable unilaterally to ascertain which delivery vouchers are reflected in the total amount paid to it by the buyer. This is the result of the omission of delivery date, description of delivered goods, unit price, quantity, and like information, for discrete transactions, from the detailed payment statement.
In such instances, the seller must confirm substantive details with the buyer, in order to verify the amount of money received. Where, for example, the amount of money paid to the seller does not agree with the total amount invoiced, the seller's accounting representative must either confirm with the buyer the contents of the detailed vouchers or make discrete inquiries regarding payment amounts. This work places a significant burden on the accounting departments and constitutes a material impediment to enhancing the efficiency of account settlement processing.
Specifically, where a single account settlement for a large transaction is undertaken according to the detailed payment statement, a great deal of time and human effort are required to confirm substantive details recorded therein. And, in settling accounts with high-volume customers, a seller must undertake account settlement in terms of the smallest transaction, i.e., by voucher, in order to set receivables off against payables.
On the other hand, with the popularization of the internet, the construction of EDI-implemented (electronic data interchange) information exchange systems is being tested in all functional disciplines. It is anticipated that use of the system contemplated by the present invention will, particularly as between companies, facilitate more efficient account settlement processing and distribution in complex distribution channels.